China’s Dominance in Rare Earths Market Threatens US Manufacturing and Military Power
China’s control of the rare earths market, crucial metals used in a wide range of industries, has become a major concern for the United States amid the ongoing trade war between the two countries. Rare earths, consisting of 17 metals, are vital for technology, energy, and transportation sectors. China’s recent move to further limit the market for these metals could have dire consequences for American manufacturing and military capabilities.
These metals, including heavy and light rare earths such as neodymium and praseodymium, are used in products like electric vehicles, fighter jets, wind turbines, and LED lights. Rare earths are particularly valuable in creating high-quality magnets that are essential for various advanced applications like semiconductor chips and electric car motors.
The United States, which currently has a single rare earths mine, used to be a major player in rare earth production but has since dwindled to a mere 15 percent share of the global market. Meanwhile, China controls nearly 70 percent of the market, giving it significant leverage in setting prices and controlling exports.
China’s restrictions on rare earth exports could severely impact American industries, causing disruptions in manufacturing processes and military operations. Companies have been stockpiling rare earths in anticipation of potential supply shortages, but the true extent of the impact remains uncertain.
As China consolidates its control over the rare earths industry, the United States must find ways to secure alternative sources of these crucial metals to safeguard its manufacturing and military capabilities. Failure to address this growing dependency on Chinese rare earths could leave the U.S. vulnerable to geopolitical threats and economic instability.
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